Unit Elastic Demand Means That the

question 146

Multiple Choice

Unit elastic demand means that the

• A) demand curve is horizontal.
• B) demand curve is vertical.
• C) ratio of a change in the quantity demanded to a change in the price equals 1.
• D) ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1.

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Definitions:

Special Order

An order for goods or services that is outside the company's standard offerings, often requiring custom pricing and production considerations.

Minimum Price

The lowest price at which a product or service can be sold, often determined by costs, competition, or regulation.

Variable Manufacturing Cost

A cost that varies with the level of output production which includes direct materials, direct labor, and variable manufacturing overhead.

Fixed Costs

Costs that remain constant in total regardless of changes in the level of production or sales volume.